Just Eat delivers strong start to trading in a £1.5bn market debut

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Online takeaway food service Just Eat delivered a strong start to trading as it made its £1.5bn stock market debut in the biggest UK technology flotation for eight years.

Shares in the company were initially priced at 260p, at the top of the expected range, but leapt as much as 10 per cent higher at one stage before settling about four per cent up.

It is the biggest listing since the £4.6bn flotation of gambling site Party Gaming in 2005.

Its valuation sees the group worth more than takeaway delivery firm Domino’s Pizza, which is worth around £920m.

Just Eat’s initial public offering (IPO) marks the latest in a flurry of recent listings after launches from Poundland, Pets at Home, and boohoo.com.

The move to sell almost a quarter of its equity has raised £100m for the company and up to £287m for the shareholders who are selling down their stakes as part of the float, including venture capital backers, as well as senior management, employees and former staff.

The float is expected to have netted a windfall for chief executive David Buttress as well as for the group’s founder Klaus Nyengaard.

Mr Buttress said: “Our compelling growth story and market-leading positions have attracted strong investor support for the IPO and I am confident and incredibly excited about our future as we start the next stage of our development as a public company.”